Planning a home project? Schedule your free consultation today!
Planning a home project? Schedule your free consultation today!
We bring the same attention to detail and project management to laneway homes.
Vancouver has allowed laneway homes since 2009, but things got a lot simpler in 2023 when the city standardized the rules. Now you can build up to 0.25 Floor-Space Ratio (FSR), which basically means about 1,000 square feet on a typical Vancouver lot. And with new rainwater management requirements kicking in this July, we're seeing a perfect storm of opportunity for backyard housing.
We keep hearing the same three questions from homeowners:
"Does a laneway home actually make financial sense when mortgage rates are this high?"
"What will it really cost me, and how long am I looking at?"
"Who can I trust to handle permits and construction without any nasty surprises?"
We've been building everything from whole-house lifts to heritage restorations for years, so a 900-square-foot laneway home might seem small by comparison, but it's still a project that deserves thoughtful design and expert execution.
Let's be honest about what's driving this boom:
It's a hedge against high mortgage rates. Yes, borrowing is expensive right now, but rental income helps offset those costs. A well-designed 2-bedroom laneway home can rent for around $2,800 a month in today's market, which covers up to 70% of the monthly payments on a $500K project loan at 6% interest.
Families want aging-in-place solutions. More and more, we're seeing grandparents who want their independence but also want to be close enough to help with the grandkids and share family dinners.
The rental market is brutal for tenants. CMHC says Metro Vancouver's vacancy rate hit 0.8%, the lowest we've seen in a decade. Any new rental suite you create will have tenants lining up.
They actually add value now. Appraisers have finally caught on. A well-designed laneway home isn't just an expensive shed anymore. It's legitimate square footage that adds to your property value.
Whether you're looking for steady rental income or a way to keep family close, the combination of policy support and market demand makes this a smart time to act.
We break costs down into three main categories:
You're looking at $450-$550 per square foot for full-service construction. If you want high-performance windows, vaulted ceilings, and custom built-ins, you'll hit the higher end. A more basic rental-focused build lands on the lower side.
This is where a lot of builders give you sticker shock later because they don't mention these upfront:
These numbers change based on your lot's slope, whether you have protected trees, and how wide your lane is, but they're real costs that you need to plan for.
Design, engineering, surveying, and coordinating with the city typically runs 8-12% of your construction costs. This might seem like a lot upfront, but it saves you multiples later by preventing expensive redesigns and change orders mid-construction.
The bottom line: For a 900-square-foot laneway home, budget somewhere between $250,000 for a no-frills rental unit and $500,000 for something fully customized and future-proof. If someone quotes you way below that range, they're either assuming you'll do a lot of the work yourself or they're leaving out costs that will surprise you later.
We start by confirming your zoning, studying any protected trees, creating a 3D model of what fits, and giving you a realistic budget range.
This is where we figure out floor plans that maximize natural light and privacy, and create a mood board for finishes that match your style and budget.
The longest part... getting all the structural, energy, and rainwater calculations done, submitting to the city, and notifying your neighbors. Timeline depends on how busy the city is.
We get final bids from all our trades and give you a fixed-price contract so there are no surprises.
The fun part... site prep, digging trenches for utilities, framing, weather-proofing, and all the interior work.
Final city inspection, landscaping touch-ups, and if you're renting it out, we can even help you get it listed.
Realistic timeline from start to finish: 32-40 weeks. Anyone promising "six months total" is either skipping the permit reality or planning to hand you an unfinished project.
We're used to complicated projects. We already juggle engineer sign-offs, heritage approvals, and clients living in their homes during major renovations. A backyard build uses the same coordination skills, just without the structural headaches of working on a 100-year-old house.
Fixed pricing at every stage. Feasibility study is a flat fee. Design work is capped hours. Construction is a lump-sum contract tied to detailed specifications. No moving targets once we start.
You always know what's happening. Every Friday you get an update showing budget, schedule, and photos from the site. No need to chase down workers for answers.
We actually think about how you'll live in the space. Beyond just meeting code requirements, we consider things like where morning sunlight hits for your coffee, where you'll store a stroller, how to give a grandparent privacy while keeping them connected to family life. Some builders call these "extras," but we call it good design.
We stick around after we're done. Two-year workmanship warranty with scheduled check-ins at 12 months. The kind of after-care support usually reserved for million-dollar custom homes.
We've put together a detailed 18-page guide called "2025 Laneway Roadmap" that goes deeper into costs, permits, and includes real floor plan examples. It's free, and when you're ready to talk specifics, we offer a no-pressure 30-minute consultation to look at what your backyard could become.
Download the Roadmap & Book Your Call »
About reVISION
We're architects and builders who've tackled everything from century-old foundations to luxury whole-house renovations. We bring the same attention to detail and project management to laneway homes – because small doesn't mean simple, and every square foot should make your daily life better.
Questions? Call us at 778-874-2266 or email laneway@revisiondb.com.
Your family, your future tenants, and your neighborhood deserve a laneway home that feels intentional and well-designed. Let's make it happen.
